Roku, Inc. (NASDAQ: ROKU) saw its stock jump over 10% in early trading following the announcement of a new exclusive integration with Amazon Ads. This collaboration offers advertisers access to the largest authenticated connected TV (CTV) audience in the U.S. through Amazon’s Demand-Side Platform (DSP), opening new doors for precision targeting and performance measurement in the rapidly evolving streaming landscape.
The partnership connects Amazon DSP advertisers with approximately 80 million U.S. CTV households that are logged in, representing over 80% of the total U.S. CTV market, according to ComScore data. This scale is unprecedented and marks a significant step forward in enabling advertisers to plan, optimize, and measure campaigns with much greater accuracy across multiple streaming platforms.
By integrating Amazon’s DSP with Roku’s extensive streaming ecosystem, advertisers can now reach viewers across major apps including The Roku Channel, Prime Video, and other popular services available on Roku and Fire TV operating systems. This includes content from Disney, FOX Corporation, Paramount, Tubi, and Warner Bros Discovery, among others. The result is a unified platform that enhances addressability and reduces inefficiencies traditionally associated with CTV advertising.
Early testing of this integration has delivered promising results. Advertisers were able to reach 40% more unique viewers using the same budget, while simultaneously reducing ad frequency by nearly 30%. This means advertisers get roughly three times more value from their ad spend, benefiting from improved audience targeting and less wasted impressions.
Paul Kotas, Senior Vice President of Amazon Ads, highlighted the impact of this collaboration: “Our exclusive partnership with Roku is a giant leap for advertisers, bringing best-in-class planning, audience precision, and performance to TV advertising. We’re removing the guesswork and delivering capabilities that simply weren’t possible before.” He emphasized that the integration allows advertisers to drive full-funnel outcomes, from awareness to conversion, while cutting down on media waste across Amazon and Roku streaming audiences.
A key technical feature of the partnership is a custom identity resolution service that lets Amazon DSP recognize logged-in viewers across Roku devices and operating systems. This deterministic identification enables advertisers to target the same viewer across different streaming channels and devices with greater accuracy than ever before, improving both targeting precision and measurement capabilities.
Roku’s President of Media, Charlie Collier, reflected on the company’s long-standing commitment to performance-driven and transparent advertising solutions. He noted that Amazon DSP exemplifies these principles and that the partnership creates a “unified, future-ready solution at an unprecedented scale.” With Roku accounting for nearly half of all TV streaming time in the U.S., the combined strengths of Roku and Amazon position them to deliver measurable outcomes and differentiate their DSP offerings for advertisers and marketers.
The exclusive integration between Amazon DSP and Roku provides advertisers with significant advantages, including enhanced reach and precision by combining authenticated audiences from two of the largest connected TV platforms with Amazon’s extensive data on shopping, streaming, and browsing behaviors. This synergy allows brands to target consumers more accurately and link ads directly to actions like purchases. Additionally, the integration offers comprehensive measurement by merging Roku’s ad data with Amazon DSP insights, giving advertisers detailed visibility into ad performance throughout the entire customer journey, from awareness to conversion, capabilities unmatched by other demand-side platforms. Furthermore, Amazon DSP’s cross-device and cross-channel user recognition improves ad frequency control, ensuring the right number of ads are delivered, minimizing wasted impressions, and enhancing the overall viewer experience.
Amazon Ads provides full-funnel advertising solutions that cater to businesses of all sizes. Amazon DSP leverages first-party data and advanced AI-driven automation to improve campaign planning, buying, and measurement, helping brands connect with relevant audiences more efficiently. This partnership complements Roku’s direct sales efforts and underscores its strategy to work with diverse partners to maximize reach and performance for clients1.
The Company advises that the new solution will be available to all U.S. advertisers using Amazon DSP by the fourth quarter of 2025, marking a significant milestone in CTV advertising capabilities.
